Eagle Eye Sol Gp PLC - AGM Statement

 14 November 2019

Eagle Eye Solutions Group plc

("Eagle Eye", the "Group", or the "Company")

AGM Statement

Growing customer traction signals positive start to the year

Eagle Eye, a leading SaaS technology company that creates digital connections enabling personalised, real-time marketing through coupons, loyalty, apps, subscriptions and gift services, announces that at the Company's Annual General Meeting ("AGM"), to be held at 1:00 p.m. today, Malcolm Wall, Non-Executive Chairman of Eagle Eye, will make the following statement on the Group's trading:

"In our September results announcement we reported a successful year ended 30 June 2019, in which the Company expanded its international reach and customer base, grew platform revenues and transaction volumes considerably, moved operations to the Google Cloud and most notably, broke through to adjusted EBITDA profitability.

I am pleased to confirm the continued successful execution of our strategy in the first four months of FY2020, delivering revenue growth of 24% compared to the equivalent period in FY2019, with revenue generated by the AIR platform growing by 25%. This growth has been driven by the impact of wins at the end of the last financial year, together with transaction growth from brand campaigns through our food and beverage network. In addition, in October 2019, we successfully completed the full roll out of our loyalty service for an existing Tier 1 customer, demonstrating our continued ability to deepen our client relationships by providing additional revenue generating services. The period has delivered an adjusted EBITDA profit, in line with management expectations, demonstrating considerable progress on the prior year.

We previously noted that several revenue generating customer engagements secured during the FY2019 financial year would progress to multi-year contracts in FY2020. We were therefore delighted to announce this quarter the successful evolution of one of these with a leading New Zealand retailer. As we have progressed through the first months of the year, the number of revenue generating initial customer engagements across the Group has continued to grow, boding well for future multi-year contracts.  

Our move to the Google Cloud Platform has transformed the way in which we can launch into new geographies, no longer requiring the significant upfront investment in technology and capacity. We are now able to flex our capacity as customers require, matching costs with revenue. This ensures a more efficient financial and operational model, removing a significant barrier to our global expansion. This enhanced capability has already begun to pay dividends in Australia and paves the way for further future expansion.

We are making good progress in the US, working closely with our partner, News America Marketing, the premier marketing services company in the US and Canada. Given the sheer scale of the paper couponing and promotions market in the US, we believe the opportunity in this territory to be significant and look forward to reporting further progress as we move through the current financial year.

The Group's funding position and headroom within its £5 million banking facility with Barclays are in line with management expectations and continue to be sufficient to support the Group's existing growth plans.

Outlook

The successful go live of two UK Tier 1 implementations in Q2, combined with the continued growth of the existing customer base, is anticipated to drive a strong uptick in transaction volumes and revenue in the remainder of the quarter, in line with management expectations.

We have an increasing number of promising revenue generating customer engagements, which combined with our high levels of recurring revenue, very low levels of customer churn and expanding market opportunity provide the Board with confidence as we look to the remainder of the year and beyond."

Notes:

All financials based on unaudited figures.

Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest and tax from the measure of profit.

About Eagle Eye

Eagle Eye is a leading SaaS technology company transforming marketing by creating digital connections that enable personalised performance marketing in real time through coupons, loyalty, apps, subscriptions and gift services. 

Eagle Eye AIR enables the secure issuance and redemption of digital offers and rewards at scale, across multiple channels, enabling a single customer view. We create a network between merchants, brands and audiences to enable customer acquisition, interaction and retention at lower cost whilst driving marketing innovation.

The Group's current customer base comprises leading names in UK Grocery, Retail and Food & Beverage sectors, including Asda, Sainsbury's, Tesco, Waitrose and John Lewis & Partners, JD Sports, Greggs, Mitchells & Butlers, Pizza Express and in Canada, Loblaws, Shoppers Drug Mart and Esso.

For more information, please visit www.eagleeye.com